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Steps to become debt free

If you need to get out from under high interest rate debt(creditcard or otherwise), you can follow these easy steps:
  1. Get a low interest rate loan or creditcard with low or no balance transfer fee. If you have a fee, make sure that the savings in interest is more than the fee.
  2. Pay off the high interest rate debt(s). Cancel and cut-up any associated creditcards and checks.
  3. Put any of the low interest rate creditcards and checks in your safe or safety deposit box(or anywhere safe, so you aren't carrying them around.)
  4. Get a rebate card and use it for new purchases. Write each charge in your checkbook, maybe in red, and don't spend more than you have.
  5. Pay off your rebate card each month. The preferable way to do this is to have the full amount automatically deducted from your checking account each month. Since you've recorded all your charges and haven't allowed your balance to go below your minimum, you will always have enough in the account.
  6. Large emergency expenses that would exceed the amount available in your checking account can either go on your low rate card directly, or if you don't have a balance transfer fee, through your rebate card and transferred to the low rate card.
  7. Use the interest savings and rebates to pay off the remaining highest interest rate card, starting over at step 2.
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